Artificial Intelligence (AI) In Video Games Market: Opportunities, Strategies, Size, Share, and Analysis 2024-2033

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Overview and Scope

Artificial intelligence in video games refers to the use of algorithms and programming techniques to create computer-controlled characters or entities that exhibit intelligent behaviors, adapting and responding to dynamic game environments. It enhances the player experience by providing realistic and challenging interactions within the virtual gaming world.

Sizing and Forecast

The artificial Intelligence (AI) in video games market size has grown exponentially in recent years. It will grow from $1.71 billion in 2023 to $2.24 billion in 2024 at a compound annual growth rate (CAGR) of 30.8%. The growth in the historic period can be attributed to emergence of 3D graphics, evolution of game design, demand for realism and immersion, advancements in machine learning, expansion of multiplayer gaming.

The artificial Intelligence (AI) in video games market size is expected to see exponential growth in the next few years. It will grow to $6.32 billion in 2028 at a compound annual growth rate (CAGR) of 29.6%. The growth in the forecast period can be attributed to growth of player analytics, rise of virtual and augmented reality gaming, growing mobile gaming market, expansion of cloud gaming, growth of player analytics. Major trends in the forecast period include artificial intelligence (AI)-powered personalized experiences, integration of artificial intelligence (AI) in game development tools, emergence of artificial intelligence (AI)-generated content, expansion of artificial intelligence (AI)-driven virtual assistants, enhanced realism with artificial intelligence (AI)-generated graphics.

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Segmentation & Regional Insights

The artificial intelligence (AI) in video games market covered in this report is segmented –

1) By Component: Hardware, Software, Service

2) By Technology: Machine Learning, Natural Language Processing, Computer Vision, Gesture Control, Other Technologies

3) By Genre: Action, Adventure, Puzzle, Simulation, Role playing, Other Genres

North-America was the largest region in the artificial intelligence (AI) in video games market in 2023. The regions covered in the artificial intelligence (AI) in video games market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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Major Driver Impacting Market Growth

The upsurge in the penetration of smartphones is expected to propel the growth of artificial intelligence (AI) in video games market going forward. Smartphones are advanced mobile devices that combine telephony, computing, and internet capabilities in a single handheld device. The rise in smartphone penetration can be attributed to increasing affordability, technological advancements, and growing demand for connected services and applications. Rising smartphone utilization integrates artificial intelligence (AI) in video games for enhanced user experiences, personalized content recommendations, and adaptive gameplay elements. This allows game developers to implement advanced AI algorithms for realistic characters, dynamic environments, and intricate gameplay scenarios. For instance, in February 2023, according to Uswitch Limited, a UK-based price comparison and switching service company, there were 71.8 million mobile connections in the UK, a 3.8% (or around 2.6 million) increase over 2021. The UK population is expected to grow to 68.3 million by 2025, of which 95% (or around 65 million individuals) will own a smartphone. Therefore, the upsurge in the penetration of smartphones is driving the growth of artificial intelligence (AI) in video games market.

Key Industry Players

Major companies operating in the artificial intelligence (AI) in video games market are Microsoft Corporation, Tencent Holdings Limited, NVIDIA Corporation, Nintendo Co. Ltd., Teleperformance Nordic AB, Bandai Namco Entertainment Inc., Electronic Arts Inc., Square Enix Holdings Co. Ltd., Inworld AI Inc., Ubisoft Entertainment SA, Konami Holdings Corporation, Unity Technologies Inc., Rival Theory Inc., Eidos-Sherbrooke Inc., Google DeepMind Technologies Limited, Rockstar Games Inc., LeewayHertz Technologies Private Limited, SideFX Software Inc., Heroz Inc., Osmo, Leia Inc., Powder AI Inc., Titan AI Inc., Signality Inc., Latitude.io Inc., Markovate Inc., Bungie Inc., PrometheanAI Inc., DefinedCrowd Corporation, Martian Lawyers Club

The artificial intelligence (ai) in video games market report table of contents includes:

Executive Summary
Artificial Intelligence (AI) In Video Games Market Characteristics
Artificial Intelligence (AI) In Video Games Market Trends And Strategies
Artificial Intelligence (AI) In Video Games Market – Macro Economic Scenario
Global Artificial Intelligence (AI) In Video Games Market Size and Growth

Global Artificial Intelligence (AI) In Video Games Market Competitive Benchmarking
Global Artificial Intelligence (AI) In Video Games Market Competitive Dashboard
Key Mergers And Acquisitions In The Artificial Intelligence (AI) In Video Games Market
Artificial Intelligence (AI) In Video Games Market Future Outlook and Potential Analysis
Appendix

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